# cigar taxes



## teotides (Oct 11, 2008)

I was at my local B&M yesterday and the owner told me the only reason online cigars are so cheap is the lack of tobacco tax added to the sales. He said that the government will sometimes make you pay back taxes for items bought up to three years. Does anyone know if there is any truth to this or just a scam to get me to buy more from him?


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## Hermit (Aug 5, 2008)

The same could be true for any sales taxes not paid on internet sales.
You're supposed to fess up on your state tax return. Nobody does.

BTW, he just wants your business.


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## Warren (Apr 6, 2007)

If you are curious about how much tax you pay per state here is the table.

http://www.cigarrights.org/cigar_taxes.htm


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## Rolando (Jul 17, 2008)

I have never heard of an individual being audited for sales tax only businesses. Technically you do owe taxes even if the tax is not collected. If a local business is not collecting and the state does an audit they will attempt to collect the tax from everyone who has made a taxable purchase. Since online retailers are only required to collect in states where they have a physical presence that tax usually goes uncollected and there is not much anyone can do (at least for now).


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## squeeze left (Jun 28, 2006)

A member of my family got a bill for $300 from Massachusetts Dept. of Rev. for cigarette taxes on cigs from an indian reservation over the course of 2 years. I don't knwo how they found out. Never had a problem with cigars or pipe tobacco, though.


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## Dgar (Sep 12, 2006)

There may be some truth to it ,probably is true.... but I think his motives for telling you may be a little self serving, I have never met a BOTL that has had to cough up state sales tax owed due to online cigar orders, probably has happend, but chances are very very very slim at best...... I've been ordering online for years, I hope I'm right!


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## gary106334 (Sep 28, 2006)

Dgar said:


> I hope I'm right!


Me too.


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## brigey (Dec 17, 2006)

teotides said:


> I was at my local B&M yesterday and the owner told me the only reason online cigars are so cheap is the lack of tobacco tax added to the sales. He said that the government will sometimes make you pay back taxes for items bought up to three years. Does anyone know if there is any truth to this or just a scam to get me to buy more from him?


*It bites but it is true. It depends on each state. My state requires declaration of all out of state Internet (and catalog) purchases and pay the tax at the time state income taxes are filed. I think it stinks since I did not purchase the sticks in my home state and I'm already heavily taxed with the use of the Internet, gasoline taxes, postage taxes,** and ** tire taxes in my home state.* :hn:2


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## brigey (Dec 17, 2006)

squeeze left said:


> A member of my family got a bill for $300 from Massachusetts Dept. of Rev. for cigarette taxes on cigs from an indian reservation over the course of 2 years. I don't knwo how they found out. Never had a problem with cigars or pipe tobacco, though.


*Did they use a credit card to purchase the smokes? The statement goes to a home address. If they have compensating agreements with the other state where the purchase took place then they can find out where the product was purchased.*:gn


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## Paint (Mar 1, 2008)

I have heard of people buying cigs online, and then getting a random audit and the taxes for the cigs were then due plus interest and penalties...So don't buy cigs online!!!


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## robofan (Jun 7, 2008)

Dgar said:


> There may be some truth to it ,probably is true.... but I think his motives for telling you may be a little self serving, I have never met a BOTL that has had to cough up state sales tax owed due to online cigar orders, probably has happend, but chances are very very very slim at best...... I've been ordering online for years, I hope I'm right!


You are right so far. If you look at the link provided by Warren you will see that most states do not have high taxes on cigars yet. Not as compared to cigarettes. My state Michigan has a 32% tax on the wholesale price of cigars and a $2.00 a pack tax on cigarettes. So for now they are concentrating on the cigarette smokers. More bang for the buck. However the precedent has been set.

What worries me is that last year according to Cigar Aficionado congress passed and sent to President Bush a bill which would have raised the federal tax on cigars from .05 per cigar which it is today to up to $3.00 per cigar. He vetoed the bill thank goodness but next year we will have a new president. You know once the Fed raises taxes the states will see an opportunity to raise taxes as well. Then you will have serious tax money at stake and cigar smokers will be added to the tax collection list along with cigarette smokers.


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## Ironmeden (Feb 24, 2007)

I am a big supporter of our local shops here in Minnesota, even with the 70% tax. 

I have heard this point made before by some cigar shop owners that they 'heard' somebody got an audit and had to pay for their online cigar purchases. Personally I have not met anyone who has had this audit. 

Yea it may be a scare tactic by the local B&M owner, but they just want your business....its not their fault you have to pay such high prices. 

If people spent just spent a little time contacting their local state representative when these new tobacco taxes are introduced, I pretty sure you would have a new best friend in your local cigar shop owner, they can't stop high taxes alone. They need a little help.


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## Warren (Apr 6, 2007)

Just to be clear I posted the taxes by state so you would know what each state tax is. I was not trying to suggest that you should pull out the calculator and cut a check. 

I've never had a problem and I buy online all the time and have for years.

While I try to support my GA B&Ms I gotta be honest, I usually go to the internet for boxes or make the short drive to Tennessee.


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## Cigary (Oct 19, 2007)

Warren said:


> Just to be clear I posted the taxes by state so you would know what each state tax is. I was not trying to suggest that you should pull out the calculator and cut a check.
> 
> I've never had a problem and I buy online all the time and have for years.
> 
> While I try to support my GA B&Ms I gotta be honest, I usually go to the internet for boxes or make the short drive to Tennessee.


Lol,,,don't worry about me cutting a check for all the 'gars I have paid for online but when I asked my accountant what the real deal is he says to me,,,,"If you make the purchase then you are responsible just as you are responsible when you buy your wife all that jewelry when you travel to the Carribean and pay no sales tax over there and are supposed to declare it when you come back to the US",,,,to which I reply " That supposes I even admit to going to the Carribean "

Taxes,,,don't even get me started!:gn:gn


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## Habanolover (Feb 22, 2006)

Moved to the Tobacco Legislation forum.


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## PerpetualNoob (Sep 9, 2008)

Warren said:


> If you are curious about how much tax you pay per state here is the table.
> 
> http://www.cigarrights.org/cigar_taxes.htm


Don't suppose you noticed which state it tied for first place? Yeah, that's me.

To the OP: me and my roommate got popped once for cigarettes we had bought online over several years. $1700 apiece, and that was just the state. They demanded and got credit card records from the various Indian reservation smoke shops and busted us that way. Fortunately, they didn't tell the city nazis, or it would have been about that much more. It's very depressing to be ruled by socialists. I've had to resort to trolling convenience stores looking for anything menthol that's 2-fer-1, and even then I still have to pay about $3 in state and local taxes on the "free" pack. Anyone who wants "change" can have my state leg. and city Assembly.


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